Understanding the Illegality of Tip Skimming in Coffee Shops

In today's Hamilton Spectator, Ed Canning highlighted the illegality of tip skimming in his article "Tip Skimming is Illegal." This is particularly relevant to us, as a student recently shared during our class how their former coffee shop employer was unlawfully keeping all the tips.

Canning emphasizes the clear rules against this practice, noting that while tip pooling among staff is allowed, owners cannot take employees' tips. As coffee shop owners, it's crucial to understand and adhere to these rules to maintain ethical practices and compliance with the law.

Employees can anonymously report violations to the Ministry of Labour, prompting audits and potential penalties for non-compliant businesses.

Ethical practices are vital, especially with increased tipping post-pandemic, to foster a fair and supportive work environment.

It's also important to note that direct tips are not subject to CPP contributions or EI premiums, whereas controlled tips are. Learn more about this here.